Judicial recovery of debts (B2B, recovery of undisputed commercial claims)
Judicial recovery of debts (B2B, recovery of undisputed commercial claims)
In order to facilitate, to speed up and to reduce the expenses for the recovery of undisputed commercial claims, the legislator has provided for a particular administrative procedure allowing to obtain an enforcement order that will be necessary to proceed to enforcement against your debtors.
This procedure is in principle restricted to undisputed claims between legal entities or natural persons registered with the Central Databank of Companies (Banque Carrefour des Entreprises). For more information as to the conditions for the application of the procedure, please contact us.
It takes place in two steps, i.e.:
A formal demand for payment is served to the opposing party ;
In the absence of full payment / of agreement about a repayment schedule / of contestation of the claim in proper form within one month after the formal demand for payment, a no-challenge statement is drawn up.
Said statement can subsequently be declared enforceable by a magistrate of the Management and Monitoring Committee of the Central file of Notices of seizure, assignment, cession and collective settlement of debts and of protest and will then constitute an enforcement order (if necessary, through an attachment).
This procedure allows to avoid the case scheduling fees due in case of summons (100 €), the contribution to the Legal Aid Fund (20 €) as well as the registration fees (50 €).
Important detail: the Judicial Code limits the amount of the interests and penalty clauses likely to be recovered through this procedure to a maximum of 10 % of the principal amount due (article 1394/20 of the Judicial Code) and this, regardless of what is provided for in your possible standard terms.
You can of course still opt for the summons proceedings even if you meet the conditions for the procedure for recovery of undisputed commercial claims.